Auto Depreciation Insurance

New cars depreciate in value quickly; the compensation a standard auto insurance policy provides may only be enough to purchase a used car as a replacement. The New Auto Security Coverage Endorsement protects your new vehicle against depreciation for up to two years.

The car insurance endorsement includes:

Lease/loan security – Covers the difference if you owe more on your vehicle than its current value, and it is a total loss. Coverage applies to vehicles on lease or auto loan for up to seven years.

Replacement cost – Erie Insurance will pay to replace your car if it is two years old or less and is a total loss. The Policyholder will receive a new car of the same make and model. If the model is no longer available, the insured will be offered a similar vehicle. (The replacement coverage is not available on leased vehicles.)

Repair coverage – ERIE will pay to repair your vehicle, without a deduction for depreciation, if it is two years old or less and is not a total loss.

This endorsement must be added to a new vehicle within 60 days of the lease/purchase of the vehicle and the Policyholder must have purchased comprehensive and collision insurance coverage. This endorsement is not available in New York or North Carolina.